The euro fell to its lowest level since late November 2022 against the US dollar on Thursday.
The currency has been weighed down by the strength of its American counterpart amid expectations of inflationary policies from President-elect Donald Trump.
At around 12:55, the US dollar rose by 0.23% against the euro, trading at $1.0332 per euro, after hitting $1.0314.
The exchange rate has already dropped by about 8% since September. The euro is under pressure due to concerns over the impact of American tariffs on the export-oriented European economy, which Donald Trump plans to impose.
Expectations that the European Central Bank will cut interest rates more aggressively than the US Federal Reserve have also played a role, as has political uncertainty in several major European countries.
Additionally, the Federal Reserve now only plans two interest rate cuts this year, down from the four previously projected.
Many observers believe that parity between the euro and the dollar is on the horizon this year.
The last time this occurred was during the energy crisis following Russia’s invasion of Ukraine.
